Just as Hong Kong is thriving as a global financial hub, Catalonia in northeastern Spain is a booming centre for innovation and creativity. According to the Financial Times (FT), it was the best region in Southern Europe for investing in 2020 and 2021, with investment activity reaching an all-time high in 2022. It also has the distinction of being the first start-up hub in Southern Europe, with the number of start-ups doubling in the past five years. 

At a seminar on 13 October, Roger Torrent i Ramió, Minister of Business and Labour, and Oriol Alcoba Malaspina, General Director of Industry of the Ministry of Business and Labour of the Government of Catalonia, explained why the region is a top destination for Hong Kong businesses seeking investment opportunities. Torrent said the two economies enjoyed a strong and historic relationship, with Catalonia first opening a trade and investment office 35 years ago in Hong Kong. It is one of 40 such offices run by ACCIÓ, the Catalan Government’s agency for business competitiveness, which is attached to the Ministry of Business and Labour.

Catalonia holds an excellent position in Industry 4.0 (the integration of intelligent digital technologies into manufacturing and industrial processes), allowing it to face the global challenges of digital transformation and sustainability. Combined with the thriving ecosystem, this has encouraged investment from a growing number of companies from China, Asia and other countries, especially those from the technological sector, said Torrent. In fact, foreign investment in Catalonia in 2022 grew 25% to nearly €3.9 million.

Thanks to its strategic location, powerful industrial base and strong technology and innovation ecosystem, Catalonia provides a robust platform for boosting business on a global scale. Companies looking to invest would find a readily available pool of qualified local and international talent, especially in the innovation area, he added. 

Catalonia serves as a key driver for the Spanish economy in sectors such as chemical and plastics, F&B, automotive, metallurgy and life sciences, while accounting for over 20% of the country’s innovative companies and 30.5% of its regular exporting firms. Barcelona, Catalonia’s capital and second-largest metropolis, is an internationally recognized technological hub, ranking second after London for its effective tech ecosystem approach, and was named the fourth European city of the future in connectivity, according to the FT. 

Malaspina said the Catalan Government’s National Agreement for the Industry 2022-2025 provides a series of measures to promote the circular economy in the industrial sector, with the goal to represent 25% of GDP by 2030. The main aims include reactivating the industrial business community, promoting industrial sub-sectors of strategic value, developing sustainability and energy, and boosting digitalization, Industry 4.0, innovation and internationalization.

Renowned as a centre for digital innovation, Catalonia also has over 2,000 start-ups, while 38 of the 50 main international innovative companies – including Meta, Amazon, Apple, Tesla and Sony – have a presence there. Between 2018 and 2022, it welcomed 109 digital innovation hubs and centres of excellence, which generated a total of €719 million and created 9,670 new jobs.

Malaspina said the region also accounts for 1% of worldwide scientific production, and is the base for ALBA Synchrotron, the largest particle accelerator in Southern Europe, an IDIADA automotive testing facility, as well as the Institute of Photonic Sciences, one of the world’s top research institutions. 

Torrent reiterated that this was a very good time for companies to consider Catalonia for investment, as the Government offered proactive schemes for foreign companies looking to invest in the region, with the amount proportionate to the level of investment. He added that companies choosing Catalonia as their base were given the same treatment as local firms, with access to a raft of funding grants and services, as well as improvement of industrial processes and innovation projects, among other benefits.